Question
Q (2) On 1/1/2020 Lee company purchased a 20,000, 2 years bond, 10% from Mark by paying 20351.82. the bond provides the bondholder with a
Q (2) On 1/1/2020 Lee company purchased a 20,000, 2 years bond, 10% from Mark by paying 20351.82. the bond provides the bondholder with a 9% yield. Interest is received at the end of each year. Assume that the bond had a fair value at the end of 2020 total of 19,000. Journalise the required journal entry for 2020 under the following two independent assumptions: a. Assume that the company intends to keep the bond until it collects the value of the bond b. Assume that the company intends to keep the bond until it collects the value of the bond but decided to subsequently measure the bond using fair value.
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